Stone Toro Readies Relative Value Tech. Fund

Mar 2 2011 | 9:14am ET

New Jersey hedge fund shop Stone Toro Asset Management is preparing for its second fund launch of the year.

The Princeton firm, which last month unveiled an event-driven arbitrage vehicle, is putting the finishing touches on a planned long/short technology fund. The new product, Stone Toro Alpha Tech, is set to debut in the summer.

Stone Toro, which was founded last year, has been using the new fund's strategy in eight separately-managed accounts since October, HFMWeek reports. The relative value fund will focus on small- and mid-cap U.S. technology stocks, with 50 long positions and half as many short.

The strategy has proven successful in its short life, rising 1.09% in November, 6.14% in December and 0.83% in January.

"Small- and mid-cap technology has historically led the market out of its recessionary phases," fund manager Michael Jarzyna told HFM. "You are seeing strength in technology and strength in small- and mid-cap stocks."

The new fund has a capacity of $500 million and a $1 million minimum investment requirement, with no lockup and monthly liquidity. It will charge 2% for management and 20% for performance, with Deutsche Bank as its prime broker.

Current investors in the managed account using the strategy will be able to keep their money segregated or join the hedge fund when it launches.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note